Complex engineering

26 January 2016 By Olaf Storbeck

The German engineer raised its expected earnings per share for 2016 by 2.5 percent. Cost-cutting seems to be taking effect. But earnings per share, which hinge on many inputs, make for a slippery target, especially as Siemens is sticking to its former revenue and margin guidance.

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Siemens, the German engineering group, raised its full-year earnings-per-share forecast late on Jan. 25 after beating market expectations for first-quarter industrial profit, revenue and orders.

The Munich-based group said it now expected earnings per share of 6.00 to 6.40 euros, up from its previous forecast of 5.90 to 6.20 euros for the year ending in September 2016. In its previous fiscal year, Siemens earned an earnings per share excluding asset disposals of 5.18 euros.

Chief Executive Joe Kaeser on Jan. 26 said Siemens has seen significant growth in demand for software for factory automation in China.

Siemens’ shares rose 6 percent to 88.37 euros by 0940 GMT on Jan. 26.

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